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Lehman Bros. Kuhn Loeb, Inc. v. Good Hope Industries, Inc. (In re Good Hope Industries, Inc.)

Citations: 14 B.R. 942; 1981 Bankr. LEXIS 2660Docket: Bankruptcy No. 75-2740-G

Court: District Court, D. Massachusetts; November 1, 1981; Federal District Court

Narrative Opinion Summary

This case involves a financial advisory fee dispute between Lehman Brothers Kuhn Loeb Incorporated and Good Hope Industries, Inc. Lehman Brothers claimed unpaid fees under an agreement dated June 17, 1975. During pre-trial proceedings, a contention arose over the deposition of Good Hope's key personnel, with Good Hope filing for a protective order to prevent depositions outside of its headquarters in Louisiana, arguing issues of timing and location. Lehman Brothers argued that their deposition notice was timely and reasonable, and the court agreed, emphasizing the necessity of depositions for case preparation. The court rejected Good Hope's procedural objections, noting that having filed for bankruptcy in Massachusetts, Good Hope cannot claim the protections typically afforded to defendants regarding deposition location. Good Hope's hardship claims were also dismissed as insufficiently substantiated. The court ruled that the depositions should occur in Massachusetts, consistent with the chosen forum, and declined to impose travel expenses on Lehman Brothers, although it left open the possibility of Good Hope recovering such expenses if successful. The decision underscores the court's discretion in managing discovery logistics and emphasizes the responsibility of the plaintiff in legal proceedings.

Legal Issues Addressed

Allocation of Travel Expenses

Application: The court decided not to impose travel costs on Lehman Brothers, though it allows for the possibility of Good Hope recovering such expenses if successful.

Reasoning: Regarding travel expenses, the Court finds no justification for imposing these costs on Lehman Brothers, although it may allow Good Hope to recover such expenses if successful at trial.

Burden of Proof for Hardship Claims

Application: Good Hope failed to demonstrate extraordinary hardship as required to shift deposition locations, relying on unverified assertions rather than substantive proof.

Reasoning: The plaintiff has not adequately demonstrated hardship; his motion relies solely on unverified assertions from his attorneys, lacking necessary affidavits to substantiate these claims.

Depositions in Chosen Forum

Application: The court determined that, as a putative plaintiff, Good Hope is required to make itself available for depositions in Massachusetts, the forum it selected by filing for bankruptcy there.

Reasoning: In this case, Good Hope, having filed for bankruptcy in the District of Massachusetts, selected the forum and thus constrained all claimants to that jurisdiction. As a putative plaintiff, Good Hope cannot invoke protections typically afforded to defendants.

Timeliness of Deposition Notice

Application: Lehman Brothers' notice for depositions was found to be within the discovery deadline, as the court interpreted the September 25 date to include that day.

Reasoning: Lehman Brothers opposes Good Hope’s motion by asserting that the deposition scheduled for September 25, 1981, falls within the discovery timeline set by the Court... the September 25 deadline clearly includes that date.